LG Energy Solution signs decade long lithium pact with Smackover

LG Energy Solution has entered into a ten year supply agreement with Smackover Lithium to secure domestic lithium resources. The deal establishes a long term partnership for the battery manufacturer as it seeks to strengthen its supply chain within the United States. This move aligns with broader industry efforts to reduce dependence on foreign mineral sources.

Under the terms of the contract, Smackover Lithium will deliver 8,000 metric tonnes of battery grade lithium carbonate annually for a period of ten years. The material will be produced at the South West Arkansas project. The company stated that the supply is expected to meet requirements for US foreign entities of concern, ensuring compliance with current regulatory standards for critical minerals.

Kang Yeol Lee, Procurement Center Leader at LG Energy Solution, described the agreement as a significant step toward building a resilient supply chain. He noted that localising both production and sourcing would help deliver competitive products to customers in the global energy storage and electric vehicle markets. The arrangement supports the Trump administration’s initiative to boost domestic critical mineral production while addressing rising power demand.

This marks the second offtake agreement secured by Smackover Lithium this year. The venture, a partnership between Standard Lithium and Equinor, previously signed a similar ten year deal with commodities trader Trafigura in March. For LG, the contract is part of a strategy to diversify its supply base and maintain cost competitiveness amid shifting regulatory environments.